HomeCryptoIran approves regulation for crypto trading

Iran approves regulation for crypto trading

Iran’s government has officially approved, in a new ad hoc regulation, the use of crypto for imports as a measure to circumvent U.S. sanctions imposed on its financial and banking sector.

Iran: imports will be paid for in crypto

Listening to the Iranian Importers Association, which had stressed a week ago the need for a stable regulatory framework for cryptocurrencies to be endorsed, the government of Iran has approved a regulation to authorize the use of cryptocurrencies for foreign trade.

The decision came after the Iranian government, in early August, as reported by local newspaper Tasmin, submitted its first cryptocurrency-based order, worth $10 million, without, however, specifying which transaction was involved and which digital asset was used.

Alireza Peyman-Pak, head of the country’s Trade Promotion Organization (TPO), confirmed this order in a tweet and said it could be the first of many more:

“By the end of September, the use of cryptocurrencies and smart contracts will be widespread in foreign trade with target countries.”

According to Iran’s main importers’ association, the regulatory framework that was approved was necessary to make it stable to use this form of payment for commercial transactions and allow those who wish to do so to have precise regulations on the matter.

Trade Minister Seyed Reza Fatemi Amin said:

“The newly approved resolution specifies all issues related to cryptocurrencies, including how to provide fuel and energy for mining them, and how to grant licenses.”

The new regulatory framework

The new regulations allow payment in digital assets for the import of any goods into the country, a move that could allow Iran to circumvent U.S. sanctions which crippled the economy and severely weakened the national currency. 

A system that some say has already been used for several years in the country to pay for even basic necessities. Cryptocurrencies have been spreading greatly in recent years precisely because of the opportunity they offer to partially circumvent the harsh sanctions imposed on the country.

Last year, an investigation by the international news agency Reuters revealed how 4.5% of global Bitcoin mining was taking place in Iran, in part because of cheap electricity, which is heavily subsidized. According to the news agency’s report, U.S. sanctions have further contributed to the increase in mining and the use of cryptocurrencies.

Vincenzo Cacioppoli
Vincenzo Cacioppoli
Vincenzo was born in Genova but lived most of his life in Milan. He has a degree in political science. He is a journalist, blogger, writer, and marketing and digital advertising expert. After a long experience in traditional marketing, he started working with the web and digital advertising in 2011, creating a company called Le enfants. Passionate about the web and innovation, in 2018 he started exploring the topics related to blockchain technology and cryptocurrencies. Independent cryptocurrency trader since March 2018, he now collaborates with companies in the sector as a content marketing specialist. In his blog. mediateccando.blogspot.com, he has long been primarily focused on blockchain, which he considers to be the greatest technological innovation after the Internet. His first book about blockchain and fintech is scheduled for release in November.